Capital investment decisions will shape the future of any business and its ability to manage its future operations. Capital investments are expensive to execute and difficult and expensive to reverse. It is important for organizations to get these decisions right first time. Capital investment appraisal techniques are the different methods used to assess the viability of capital projects before they are executed. Correct assessment of these projects is the key to the survival of organizations in the long term.
- The meaning of capital investment
- The environment of business including political economic, socio-cultural, technological, ethical and legal environment.
- The concept of Risk, Return and Liquidity
- Factors to consider before investing in a capital project
- Appraisal techniques – Discounted and non-discounted cash flows
- Return on Investment or Accounting Rate of Return
- Payback period
- Net Present Value
- Internal Rate of Return
- Advantages and disadvantages of each method
- Impact of taxation and inflation in capital investment appraisal
- Case studies of failed capital projects
For whom: Directors, Company secretaries, Legal advisers, Chief Financial Officers, Heads of department etc